Budget Overview
The Redwood City School District (RCSD) serves approximately 6,337 students in grades TK-8 across 12 schools. The district operates on a General Fund budget of $160.1 million in expenditures for the 2025-26 school year.
Community-Funded (Basic Aid) Status
RCSD is one of roughly 100 "community-funded" (formerly "Basic Aid") districts in California. This means local property tax revenue exceeds what the state would otherwise provide through the Local Control Funding Formula (LCFF). The district keeps all of its local property tax revenue rather than receiving a state check.
What does Basic Aid mean in practice? RCSD's funding rises and falls with local property values, not with state budget decisions. When property values grow, so does district revenue. But unlike state-funded districts, RCSD does not receive automatic cost-of-living adjustments from Sacramento. The district also still receives LCFF Supplemental and Concentration grants for its 60.7% unduplicated pupils (low-income, English Learner, foster, and homeless students).
Budget at a Glance
| Metric | 2025-26 |
|---|---|
| Total Revenue | $157.8M |
| Total Expenditures | $160.1M |
| Operating Deficit | ($2.3M) |
| Beginning Fund Balance | $17.1M |
| Ending Fund Balance | $14.8M |
| Reserve for Economic Uncertainty | $4.8M (3.01%) |
| Per-Pupil Spending | ~$25,260 |
| District Enrollment | 6,337 |
| Average Daily Attendance | 93.96% |
Source: 2025-26 First Interim Financial Report, presented December 17, 2025.
Where the Money Comes From
RCSD's $157.8 million in General Fund revenue comes from a mix of local property taxes, state grants, federal funds, and transfers. Because RCSD is a community-funded district, local property taxes form the single largest source.
| Revenue Source | Amount | % of Total | Visual |
|---|---|---|---|
| LCFF Base (Property Taxes) | $87,258,712 | 55.3% | |
| LCFF Ed. Protection Acct. | $1,209,540 | 0.8% | |
| LCFF Supplemental & Concentration | $10,170,409 | 6.4% | |
| Special Ed Property Taxes | $5,548,180 | 3.5% | |
| Other State Revenues | $18,243,708 | 11.6% | |
| Lottery | $1,691,545 | 1.1% | |
| Federal Revenues | $4,761,781 | 3.0% | |
| Local Revenues | $16,253,621 | 10.3% | |
| Measure U Parcel Tax | $1,621,922 | 1.0% | |
| Transfers - RDA | $11,000,000 | 7.0% | |
| Total Revenue | $157,759,418 | 100% |
Source: 2025-26 First Interim, General Fund Sources of Revenue (p. 10).
Property Taxes — The Foundation
Local property taxes (the LCFF Base plus Special Education property taxes) total approximately $92.8 million, or 59% of all General Fund revenue. San Mateo County collects property taxes and distributes the district's share. Because RCSD is community-funded, it keeps all allocated property tax revenue rather than returning a portion to the state.
The district assumes 5% annual property tax growth in its multi-year projections. However, as the district notes, "the vast majority of homes in the RCSD attendance zone were purchased when property values were much lower," meaning assessed values (and thus tax revenue) may be lower than neighboring districts with higher turnover.
LCFF Supplemental & Concentration Grants
Despite being community-funded, RCSD still receives $10.2 million in Supplemental and Concentration grants because 60.7% of its students are "unduplicated pupils" (qualifying as low-income, English Learner, foster youth, or homeless). These funds must be used to increase or improve services for these students. The LCAP details how this $10.6 million in total supplemental funding is allocated.
Federal Funds
Federal revenues ($4.8 million, 3% of budget) include Title I grants for high-poverty schools, Title III for English Learner programs, and IDEA funding for special education. Seven of the district's 12 schools receive Title I funding. Federal funds are "restricted," meaning they must be spent on specific federally mandated purposes.
RDA Transfers
The $11 million in Redevelopment Agency (RDA) transfers represents 7% of total revenue. These are pass-through payments from the former city redevelopment agency. This funding source is temporary and is expected to phase out entirely in future years, creating a significant revenue cliff.
What are restricted vs. unrestricted funds? "Restricted" funds come with legal strings attached: federal Title I money must serve low-income students, bond money can only pay for facilities, and Measure U funds can only support the programs voters approved. "Unrestricted" funds (primarily property taxes) can be used for any lawful purpose. Of the $14.8M ending fund balance, $9.0M is restricted, leaving very little unrestricted cushion.
School Bonds — Measures T & S
RCSD voters have approved two general obligation (GO) bond measures totaling $491 million to modernize school facilities. Bond funds are legally restricted to capital projects and cannot be used for salaries, pensions, or operating expenses.
How School Bonds Work
A general obligation bond is essentially a loan from investors that the district repays over time using property tax revenue. Voters must approve bonds by a 55% supermajority. The state constitution limits the tax rate to $30 per $100,000 of assessed value for elementary districts ($60 for unified). Bond money goes into a separate Building Fund (Fund 21) — completely separate from the General Fund that pays for teachers and programs.
Bond money CAN pay for: New construction, renovations, HVAC systems, electrical upgrades, safety improvements, technology infrastructure, furniture, and equipment permanently affixed to buildings.
Bond money CANNOT pay for: Teacher or administrator salaries, pensions, benefits, textbooks, professional development, or any ongoing operating costs.
Measure T (Phase I) — Passed November 2015
| Detail | Measure T |
|---|---|
| Amount | $193 million |
| Voter Approval | 63.5% Yes |
| Tax Rate | $30 per $100K assessed value |
| Max. Repayment Period | 40 years |
| Election Date | November 3, 2015 |
Measure T funded Phase I of the district's Facilities Master Plan, addressing the most urgent needs at aging campuses. Projects included classroom renovations, roof repairs, fire and earthquake safety upgrades, technology infrastructure, and modernized learning spaces. Completed projects include major modernizations at Hoover, Taft, Clifford, Roosevelt, Garfield, and Adelante Selby, among others.
Source: Ballotpedia: Measure T (2015).
Measure S (Phase II) — Passed November 2022
| Detail | Measure S |
|---|---|
| Amount | $298 million |
| Voter Approval | 60.4% Yes |
| Tax Rate | $24 per $100K assessed value |
| Annual Revenue (est.) | ~$16 million/year |
| Election Date | November 8, 2022 |
Measure S continues the modernization work that Measure T began. The district identified approximately $400 million in remaining facility needs. Projects include upgrading STEAM classrooms and labs, providing dedicated music and art spaces, modernizing HVAC and air filtration, and bringing all schools to the same safety and learning standards. Active projects include work at McKinley MIT, Henry Ford, Orion, and Garfield.
Source: Ballotpedia: Measure S (2022).
Building Fund (Fund 21) Status
As of the First Interim report, the Building Fund/Bond Fund has a balance of $48.3 million, with $3.2 million in annual revenue (from bond proceeds) and $29.1 million in planned expenditures for 2025-26, primarily capital outlay ($28.4M). This represents active construction and modernization work funded by Measures T and S.
Citizens' Bond Oversight Committee
California law requires an independent Citizens' Bond Oversight Committee (CBOC) to review bond spending and publish annual reports. RCSD's CBOC has nine members representing senior citizens, parents, taxpayers, and community members. The committee meets quarterly at the District Office and publishes annual reports for both Measure T and Measure S. Meeting agendas and minutes are available on the district website.
Parcel Tax — Measure U & 2026 Proposal
How Parcel Taxes Work
A parcel tax is a flat or formula-based tax levied on each parcel of land within a district, regardless of the property's assessed value. Unlike bonds, parcel tax revenue goes into the General Fund and can be used for operations such as teacher salaries and programs. Parcel taxes require a two-thirds supermajority to pass, a higher bar than the 55% needed for bonds.
Current Measure U (2016)
| Detail | Measure U |
|---|---|
| Amount | $85 per parcel per year |
| Annual Revenue | ~$1.6M (budgeted $1.62M) |
| Voter Approval | 79.8% Yes |
| Duration | 14 years (July 2017 – June 2030) |
| Election Date | November 8, 2016 |
| Predecessor | Renewed a $67/parcel tax from 2012 |
Measure U funds enhance math, science, reading, and writing instruction; attract and retain qualified teachers; support arts and music programs; and update classroom technology. The tax explicitly prohibits spending on administrative salaries. An independent Citizens' Oversight Committee monitors fund use.
Exemptions: Seniors age 65+, individuals receiving Supplemental Security Income for disability, and those receiving Social Security Disability Insurance with income below 250% of federal poverty guidelines may apply for exemption.
2026 Ballot Measure — New Parcel Tax Proposal
Election Day: June 2, 2026. The RCSD Board unanimously approved placing a new parcel tax on the June 2026 ballot during a special meeting on February 26, 2026. This would be in addition to Measure U, which does not expire until 2030.
| Detail | 2026 Proposal |
|---|---|
| Tax Rate | 17.5 cents per square foot of building space |
| Vacant/Unimproved Parcels | $25/year flat rate |
| Expected Revenue | $12.2 million/year |
| Duration | 8 years |
| Vote Required | Two-thirds (66.67%) |
| Election Date | June 2, 2026 |
The proposed tax would raise approximately $12.2 million per year for eight years. For a 1,000-square-foot home, the annual tax would be $175. Funds would be used to attract and retain qualified teachers, counselors, and staff; maintain science, math, and STEM instruction; preserve reading and writing programs; and maintain manageable class sizes.
Senior citizens and individuals receiving federal financial support for disabilities would be eligible for exemption.
What Happens if the 2026 Measure Fails?
The district's multi-year projections already require $5.25 million in unidentified budget cuts for 2026-27. Without the additional $12.2M in parcel tax revenue, the district would face even deeper reductions to staffing, programs, and services. The existing Measure U ($1.6M/year) continues through 2030 regardless of the June 2026 outcome.
Get Involved
A parent-led initiative, Strong Schools for Redwood City, is organizing community support for the 2026 parcel tax measure. Visit strongschools4rwc.org to learn more, volunteer, or donate.
Source: Redwood City Pulse, Feb. 27, 2026.
Where the Money Goes
RCSD's $160.1 million in General Fund expenditures is dominated by personnel costs, which account for 77.5% of all spending. This is typical for school districts, where the primary "product" is instruction delivered by people.
Expenditure Breakdown
| Category | Amount | % of Total | Visual |
|---|---|---|---|
| Certificated Salaries (teachers, admin) | $54,017,947 | 33.7% | |
| Classified Salaries (support staff) | $29,996,559 | 18.7% | |
| Employee Benefits | $40,091,839 | 25.0% | |
| Services & Operating Expenses | $29,628,400 | 18.5% | |
| Books & Supplies | $5,621,063 | 3.5% | |
| Capital Outlay | $916,048 | 0.6% | |
| Total Expenditures | $160,100,493 | 100% |
Source: 2025-26 First Interim, General Fund Expenditures (p. 11). Totals exclude other outgo/indirect costs.
Benefits: The Hidden Cost Driver
Employee benefits ($40.1M) represent a quarter of all spending and include CalSTRS pension contributions ($14.1M at 19.10% employer rate), CalPERS pension contributions ($8.1M at 26.81%), health and welfare benefits ($10.7M), and other statutory benefits ($7.1M). Both CalSTRS and CalPERS rates are projected to continue rising through 2027-28 (CalPERS to 26.90%).
Services & Operating Expenses
The $29.6 million in services and operations includes contracted services ($5.9M), professional services and operating expenses ($22.0M), and insurance ($1.6M). This category covers everything from special education service providers to utilities, transportation, legal fees, and technology contracts.
LCAP Spending Breakdown
The district's Local Control and Accountability Plan (LCAP) allocates $65.9 million of the total budget across three goals:
| LCAP Goal | Amount | Focus |
|---|---|---|
| Goal 3: Academics | $57.3M | Instruction, curriculum, credentialed teachers, CAASPP improvement |
| Goal 1: Engagement | $7.5M | Attendance, school climate, family engagement, suspensions |
| Goal 2: EL Programs | $3.2M | English Learner progress, reclassification, LTEL reduction |
| Total LCAP | $65.9M |
Source: 2025-26 Adopted LCAP.
Multi-Year Fiscal Outlook
The district's multi-year projection tells a sobering story: expenditures exceed revenues, the fund balance is declining, and significant unidentified cuts are needed to maintain the legally required 3% reserve.
Three-Year Projection
| 2025-26 | 2026-27 | 2027-28 | |
|---|---|---|---|
| Total Revenues | $157.8M | $153.9M | $160.2M |
| Total Expenditures | $160.1M | $154.9M* | $157.7M* |
| Unidentified Cuts Required | — | ($5.25M) | ($3.50M) |
| Beginning Balance | $17.1M | $14.8M | $13.8M |
| Ending Balance | $14.8M | $13.8M | $16.3M |
| Reserve % | 3.01% | 3.16% | 3.01% |
* Expenditure figures for 2026-27 and 2027-28 include unidentified fiscal stabilization measures. Source: First Interim Multi-Year Projections (p. 13).
The fund balance has fallen from $25.4M to $14.8M in two years. The district is drawing down reserves to cover deficit spending. At the current pace, the reserve would breach the 3% legal minimum without significant budget cuts. The 2026-27 projection alone requires $5.25 million in cuts that have not yet been identified.
Budget Reduction Plan
In February 2026, the district adopted a $6.04 million budget reduction plan that eliminates 31.75 FTE positions. Key reductions include:
- Increased K-2 class sizes from 25:1 to 28:1
- Elimination of some counselor and mental health positions
- Defunding of GSA teacher-lead stipends
- Replacement of district Mental Health Counselors with contracted services at several schools
Source: Redwood City Pulse, Feb. 5, 2026.
Structural Deficit Drivers
Enrollment is falling by approximately 130 students per year (from 6,337 to a projected 6,086 by 2027-28). Each lost student represents roughly $15,000-$16,000 in LCFF funding, translating to roughly $2 million per year in lost revenue. Fixed costs (facilities, administration, transportation) do not decline proportionally.
Salary step-and-column increases (1.5% annually), growing pension contribution rates (CalPERS rising to 26.90%), and health benefit inflation drive expenditures upward even as enrollment falls. Personnel costs consume 77.5% of the budget.
The $11 million in Redevelopment Agency transfers drops to zero in 2026-27 and beyond in the multi-year projection. This single revenue loss represents 7% of the entire General Fund budget and is the primary driver of the 2026-27 revenue decline.
Federal pandemic-era funds (ESSER) and other one-time grants that supported positions and programs have been fully spent. Positions funded by these one-time sources must now be absorbed by the General Fund or eliminated.
Key Budget Assumptions
| Assumption | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| District Enrollment | 6,337 | 6,210 | 6,086 |
| LCFF COLA | 2.30% | 3.02% | 3.42% |
| CalSTRS Rate | 19.10% | 19.10% | 19.10% |
| CalPERS Rate | 26.81% | 26.40% | 26.90% |
| Property Tax Growth | 5.00% | 5.00% | 5.00% |
| Step & Column | 1.50% | 1.50% | 1.50% |
Source: First Interim Budget Assumptions (p. 8).
School-Level Funding (SPSA Budgets)
Each school's Single Plan for Student Achievement (SPSA) budget captures supplemental site-level spending, including enrichment, counseling, professional development, and materials. These budgets do not include base operating costs like teacher salaries and facilities, which come from the General Fund.
| School | Total SPSA | Per Pupil | Title I | District | PTO/PTA | Measure U | Prop 28 |
|---|---|---|---|---|---|---|---|
| Adelante Selby | $854K | $1,467 | $73K | $289K | $165K | $147K | $86K |
| McKinley MIT | $795K | $1,656 | $27K | $610K | — | $75K | $77K |
| Hoover | $734K | $1,073 | $128K | — | — | $183K | $116K |
| Henry Ford | $681K | $1,523 | $61K | $249K | $75K | $147K | $75K |
| Clifford | $665K | $951 | $73K | $73K | $196K | $173K | $93K |
| North Star | $564K | $1,066 | — | $10K | $326K | $135K | $59K |
| Kennedy | $563K | $694 | $76K | $96K | $20K | $192K | $117K |
| Roy Cloud | $415K | $652 | — | $234K | $113K | $59K | — |
| Garfield | $243K | $872 | $55K | — | $0 | $79K | $90K |
| Orion | $235K | $456 | — | — | $130K | $73K | $9K |
| Roosevelt | $223K | $569 | $40K | — | — | — | $88K |
| Taft | $190K | $521 | $42K | — | — | $48K | $72K |
Source: 2025-26 School Plans for Student Achievement (SPSAs).
Understanding the Funding Sources
Title I: Federal grants for schools with high percentages of low-income students. Seven RCSD schools receive Title I funds. North Star, Roy Cloud, and Orion do not qualify.
District (ATSI/Categorical): Additional district funding targeted at schools identified for Additional Targeted Support and Improvement (ATSI). McKinley receives the largest allocation ($610K) as an ATSI-identified school.
PTO/PTA: Parent fundraising varies dramatically: North Star's PTA raises $326K (58% of its entire SPSA), while Garfield, Taft, Hoover, and Roosevelt report $0 in parent fundraising.
Measure U: Parcel tax funds distributed to schools for enrichment, music, art, and technology. Most schools receive between $48K and $192K.
Prop 28 (Arts): State Proposition 28 (2022) funds dedicated to arts and music education, distributed based on enrollment and demographics.
The equity picture is complicated. High-need schools receive more public categorical funding (Title I, ATSI) but still cannot close achievement gaps. Low-need schools like North Star receive the lowest per-pupil public funding and depend heavily on parent fundraising for basics like counselors and enrichment. Neither end is adequately served by the current model.
Key Documents & Links
Budget Documents
- 2025-26 Adopted Budget & First Interim Report (District website)
- District Funding Overview — explains community-funded status
- RCSD as a Community-Funded District
Bond & Parcel Tax
- Measure S (2022 Bond) — Projects & Updates
- Citizens' Bond Oversight Committee (Measures T & S)
- Measure U Parcel Tax
- Measure U Citizens' Oversight Committee
- Measure U Exemptions (Seniors & Disabled)
LCAP & Accountability
- 2025-26 Adopted LCAP — Local Control and Accountability Plan
- California School Dashboard — RCSD
Board Meetings
- GAMUT Board Portal — Agendas, minutes, and official documents
- RCSD YouTube Channel — Board meeting recordings
- RCSD.info Meeting Index — Searchable meeting transcripts and timestamps
External Coverage
- RWC Pulse: Parcel Tax on June Ballot (Feb. 2026)
- RWC Pulse: District Cuts $6M from Budget (Feb. 2026)